Hostess in Talks to Sell Off Bread Brands

By

Mike Spector and

Rachel Feintzeig

Updated Jan. 6, 2013 9:10 p.m. ET

Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire pieces of Hostess Brands Inc.'s bread business, as the maker of Wonder Bread and Twinkies sells off assets and liquidates, said people familiar with the talks.

Hostess could disclose Flowers, Grupo Bimbo or others as opening bidders in a looming bankruptcy-court auction for the assets as soon as this week, the people said. Hostess, whose bread brands include Wonder...